Truth in Advertising

Chapter 2.3 of Part 4 of Division 4 of the Labor Code deals with truth in advertising under the workers’ compensation laws.

Section 5430 names this chapter the Workers’ Compensation Truth in Advertising Act of 1992. Section 5431 provides that the purpose of this chapter is to assure truthful and adequate disclosure of all material and relevant information in the advertising which solicits persons to file workers’ compensation claims or to engage or consult counsel or a medical care provider or clinic to consider a workers’ compensation claim.

Section 5432 provides that any advertisement which solicits persons to file workers’ compensation claims or to engage or consult counsel or a medical care provider or clinic to consider a workers’ compensation claim in any newspaper, magazine, circular, form letter, or open publication, published, distributed, or circulated in this state, or on any billboard, card, label, transit advertisement or other written advertising medium is required to contain the specified disclosures.

Any television or radio announcement published or disseminated in this state which solicits persons to file workers’ compensation claims or to engage or consult counsel to consider a workers’ compensation claim under this code must include the specified spoken statement by the announcer of the advertisement, There are additional notice requirements specified.

Section 5433 provides that any advertisement or other device designed to produce leads based on a response from a person to file a workers’ compensation claim or to engage or consult counsel or a medical care provider or clinic is required to disclose that an agent may contact the individual if that is the fact. In addition, an individual who makes contact with a person as a result of acquiring that individual’s name from a lead generating device must disclose that fact in the initial contact with that person.

No person is permitted to solicit persons to file a workers’ compensation claim or to engage or consult counsel or a medical care provider or clinic to consider a workers’ compensation claim through the use of a true or fictitious name which is deceptive or misleading with regard to the status, character, or proprietary or representative capacity of the entity or person, or to the true purpose of the advertisement. The term “advertisement” is defined.

Section 5434 provides that any advertiser who violates Section 5431 or 5432 is guilty of a misdemeanor. The term “advertiser” is defined.